Company No: SO302010 (Scotland)

Contents

• Balance Sheet
• Reconciliation of Members' Interests
• Notes to the Financial Statements

	Note	2025		2024
		£		£
				Restated - note 2
Fixed assets
Tangible assets	5	317,373		286,417
Investment property	6	104,000		104,000
		421,373		390,417
Current assets
Debtors	7	84,773		70,042
Cash at bank and in hand		40,270		46,935
		125,043		116,977
Creditors: amounts falling due within one year	8	( 29,319)		( 28,402)
Net current assets		95,724		88,575
Total assets less current liabilities		517,097		478,992
Net assets attributable to members		517,097		478,992
Represented by
Loans and other debts due to members within one year
Other amounts		11,809		10,519
		11,809		10,519
Members' other interests
Members' capital classified as equity		970,869		852,869
Other reserves		(465,581)		(384,396)
		505,288		468,473
		517,097		478,992
Total members' interests
Loans and other debts due to members		11,809		10,519
Members' other interests		505,288		468,473
		517,097		478,992

For the financial year ending 31 March 2025 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

Members' responsibilities:

• The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of McKenzie Innovation LLP (registered number: SO302010) were approved and authorised for issue by the Board of Directors on 28 November 2025. They were signed on its behalf by:

Mrs L M Mckenzie Designated member

	EQUITY Members' other interests			DEBT Loans and other debts due to members less any amounts due from members in debtors	Total members' interests
	Members' capital (classified as equity)	Other reserves	Total	Other amounts	Total
	£	£	£	£	£
Amounts due to members				9,229
Balance at 01 April 2023	714,369	(301,282)	413,087	9,229	422,316
Loss for the financial year available for discretionary division among members	0	(83,114)	(83,114)	0	(83,114)
Members' interest after loss for the financial year	714,369	(384,396)	329,973	9,229	339,202
Introduced by members	138,500	0	138,500	0	138,500
Drawings	0	0	0	1,290	1,290
Amounts due to members				10,519
Balance at 31 March 2024 (restated - note 2)	852,869	(384,396)	468,473	10,519	478,992
Loss for the financial year available for discretionary division among members	0	(81,185)	(81,185)	0	(81,185)
Members' interest after loss for the financial year	852,869	(465,581)	387,288	10,519	397,807
Introduced by members	138,000	0	138,000	0	138,000
Repayment of capital	(20,000)	0	(20,000)	0	(20,000)
Drawings	0	0	0	1,290	1,290
Amounts due to members				11,809
Balance at 31 March 2025	970,869	(465,581)	505,288	11,809	517,097

There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

McKenzie Innovation LLP is a limited liability partnership, incorporated in the United Kingdom under the Limited Liability Partnerships Act 2000 and is registered in Scotland. The address of the LLP's registered office is 14 Carden Place, Aberdeen, AB10 1UR, Scotland, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Limited Liability Partnerships Act 2000 as applicable to Limited Liability Partnerships subject to the small Limited Liability Partnerships regime.

The financial statements are presented in pounds sterling which is the functional currency of the LLP and rounded to the nearest £.

Going concern

The members have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The members have a reasonable expectation that the LLP has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. The members continue to support the LLP and will continue to support the LLP where required in future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Prior year adjustment

An adjustment has been made to the comparative figures for the 2024 financial year to reclassify capital introduced by members as equity rather than debt. Full details on the adjustment can be found in note 2 of the financial statements.

Turnover

Turnover represents the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. Turnover is recognised with reference to the stage of completion of work carried out.

Taxation

The taxation payable on the partnership's profits is the personal liability of the members, although payment of such liabilities is administered by the partnership on behalf of its members. Consequently, neither partnership taxation nor related deferred taxation is accounted for in these financial statements.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery	25 % reducing balance
Vehicles	5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors and bank balances, are measured at transaction price.

Basic financial liabilities
Basic financial liabilities, including creditors are recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member’s participation rights including amounts subscribed or otherwise contributed by members, for example members’ capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

The profits are automatically divided as they arise and are charged as an expense in the profit and loss account and credited to other debts due to members on the balance sheet.

All amounts due to members that are classified as liabilities are presented in the Balance Sheet within 'Loans and other debts due to members' and are charged to the Profit and Loss Account within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'.

2. Prior year adjustment

Reclassification of capital introduced by members to equity from debt.

		As previously reported		Adjustment		As restated
Year ended 31 March 2024		£		£		£
Loans and other debts due to members within one year: Other amounts		0		10,519		10,519
Members' capital classified as a liability		930,356		(930,356)		0
Members' capital classified as equity		0		852,869		852,869
Other reserves		(451,364)		66,968		(384,396)
Loans and other debts due to members		930,356		(919,837)		10,519
Members' other interests		(451,364)		919,837		468,473

3. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the LLP during the year	0		0

4. Members' remuneration

Profits are shared among the members in accordance with agreed profit sharing arrangements. Members are required to make their own provision for pensions from their profit shares.

	2025		2024
	Number		Number
Average number of members during the financial year	2		2

5. Tangible assets

	Plant and machinery		Vehicles		Total
	£		£		£
Cost
At 01 April 2024	606,669		61,713		668,382
Additions	133,574		0		133,574
At 31 March 2025	740,243		61,713		801,956
Accumulated depreciation
At 01 April 2024	377,851		4,114		381,965
Charge for the financial year	90,275		12,343		102,618
At 31 March 2025	468,126		16,457		484,583
Net book value
At 31 March 2025	272,117		45,256		317,373
At 31 March 2024	228,818		57,599		286,417

6. Investment property

	Investment property
	£
Cost
As at 01 April 2024	104,000
As at 31 March 2025	104,000

The investment property was valued at 31 March 2025 by the members at its fair value of £104,000.

7. Debtors

	2025		2024
	£		£
Trade debtors	63,876		51,122
Amounts owed by related parties	14,403		8,403
Other debtors	6,494		10,517
	84,773		70,042

8. Creditors: amounts falling due within one year

	2025		2024
	£		£
Trade creditors	11,433		20,381
Other taxation and social security	11,204		1,243
Other creditors	6,682		6,778
	29,319		28,402

9. Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.